Unveiling the Roles of Hứa Thị Phấn and Her Brother Hứa Xường in the Unauthorized 249 Billion VND Loan Scandal

The Ho Chi Minh City People’s Procuracy has issued an indictment, prosecuting nine defendants in a case of fraudulent lending activities at a bank. Among them, Tran Hoang Trinh (former Director of Phu My Company) and four former board members—Hua Thi Bich Hanh, Ngo Nguyen Doan Trang, Lam Kim Dung, and Hua Xuong (younger brother of Hua Thi Phan)—are charged with “Fraud to Appropriate Property.” Four former bank employees are also charged with “Violating Banking Regulations and Related Activities.”

According to the indictment, Hua Thi Phan (Chairwoman of Phu My Company’s Board of Directors) was the mastermind behind all operations of Phu My Company. She directed the preparation of loan applications and benefited entirely from the funds embezzled from the bank, making her the primary culprit in the case. However, as Hua Thi Phan passed away on February 13, 2023, no criminal charges are being pursued against her.

Regarding Hua Xuong, who left the country before being indicted, his whereabouts remain unknown. The Ho Chi Minh City Police Investigation Agency has issued an arrest warrant for him.

The indictment reveals that from September 28, 2007, to January 17, 2008, bank officials in Ho Chi Minh City approved a loan of nearly 249 billion VND to Phu My Company in violation of regulations. The loan was intended for the Garden City high-rise residential project, with a total investment of 5.34 trillion VND, covering over 279,000 square meters in Zone 13D, Phong Phu Commune, Ho Chi Minh City.

The project was a joint venture between three companies: Phu My Company, Asia Ltd (ALL, Malaysia), and MS Investment Limited (MSI, Malaysia). They established Phu My Asia Company with a registered capital of 1.072 trillion VND. Phu My Company contributed 30% through land and cash, ALL contributed 55% (589.6 billion VND), and MSI contributed 15% (160.8 billion VND). According to the joint venture agreement, Phu My Company used 240,000 square meters of land in Zone 13D as its capital contribution. The two Malaysian companies transferred a total of 35.74 million USD as directed by Hua Thi Phan to fulfill their capital obligations.

On November 2, 2009, the Ho Chi Minh City People’s Committee issued Decision No. 4973, allocating 240,000 square meters of land in Zone 13D to Phu My Company for its capital contribution. Prior to this, Phu My Company had used this land as collateral to secure the 249 billion VND loan, resulting in an illegal mortgage.

On July 30, 2021, the South Zone Management Board informed the Ho Chi Minh City Police Investigation Agency that the 240,000 square meters in Zone 13D were part of Phu My Company’s capital contribution to the joint venture, meaning the bank had no right to recover the debt from this collateral. The remaining 39,000 square meters were not eligible for mortgage as Phu My Company had not completed its financial obligations or obtained a land use rights certificate.

The indictment further states that by August 15, 2024, the loan from Phu My Company was classified as a Group 5 bad debt, causing a loss of over 89.4 billion VND to the bank, including 79.4 billion VND in principal and 9.9 billion VND in interest. Phu My Company later provided additional collateral worth over 16 billion VND, leaving the remaining embezzled amount at over 73.3 billion VND.